Posted 1/15/2007 05:34:00 PM by Douglas

Wow, the phone company getting by without actually giving you phone service. Why the hell did this take so long and when is Verizon going to pull its head out of its ass?

Within a few months, AT&T is expected to start charging $19.95 a month for "naked" DSL, meaning you don't have to buy any other AT&T (T) service, including phone, to get that rate. It currently charges $45 for a stand-alone broadband subscription.

AT&T also is developing $10 DSL for new subscribers who also buy AT&T-branded phone service.

AT&T plans to offer both services for at least 30 months. The clock starts as soon as the media giant starts selling them in any of the 22 states where it is the incumbent local phone company, including California, Florida, Illinois and Texas.

Wow, actually giving people what they want for a competitive fee? It's almost like the free market is in play in public utilities. Oh wait:

Why so cheap? Three words: Federal Communications Commission.

The FCC, which has broad regulatory control over the U.S. telecommunications industry, recently approved AT&T's acquisition of BellSouth. To get needed votes from the FCC's two Democratic members, AT&T agreed, reluctantly, to offer these DSL bargains.

AT&T is required to roll out the $19.95 offer within one year and the $10 rate within six months. Gene Kimmelman, public policy director of Consumers Union, says he expects AT&T to move faster.

Under the terms of the FCC agreement, AT&T is required to offer naked DSL for $19.95 in markets that are at least 80% upgraded for broadband. That describes many of AT&T's biggest markets, says Kimmelman, who helped negotiate the settlement.

So in exchange for letting SBC and AT&T get back together, the FCC (who broke them up in 1982) ekes out a 30 month deal to give consumers crappy DSL without a landline? I'm so glad the government is again looking out for the consumers.